Digitalising the car rental industry – why it’s happening and what comes next

The car rental industry is finally going digital. Not with just a website and an app, but with a real transformation of how rentals work – from booking to unlocking the vehicle. Customers no longer want paper contracts, counters, or “similar model” surprises. They want convenience, predictability, and self-service.

That’s exactly what happened at Norway’s largest airports, where traditional rental giant Europcar lost its presence to Hyre – a local operator offering a mobile-first, fully digital blend of car rental and sharing. But it’s not just new players like Hyre pushing this shift. Established giants like Sixt and Avis are rapidly digitalising their rental flow as well – rolling out features like app-based bookings, mobile ID verification, and keyless access across key markets.

At ATOM Mobility, we’ve helped operators move toward this digital future for over seven years. The goal is simple: modernise outdated processes, improve the user experience, and create more profitable operations. And right now, the timing for this shift couldn’t be better.

From counters to apps: Why the rental experience is changing

Customer expectations have changed. Today’s users – especially younger ones and business travellers – are used to seamless, mobile-first journeys. They don’t want to queue at a desk, hand over their ID, wait for paperwork, or discover they’re getting a different car than they booked. And in many cases, they simply won’t accept it.

Hyre’s model responds to this new demand:

• A 100% digital rental experience, available via app, website, or walk-up self-service kiosk
• Real-time vehicle selection – you see and book the actual car you’ll drive
• Instant access via smartphone, no human interaction required

And the results are impressive:

• In 2019, Hyre made €1.1M in revenue with a €1.7M loss. In 2020 – €4.6M revenue, €0.2M profit
• By 2024, they reached ~€34M revenue and finally turned a solid profit
• They now operate 2,500+ vehicles, across 100+ models
• Average revenue per vehicle is ~€37/day (over €1,100/month) – around 50% higher than some other regional competitors

This shift is not just a trend in Norway. It’s a glimpse of where the car rental market is heading across Europe and beyond.

What users gain from a digital rental experience

The benefits for customers are obvious – and powerful:

1. No waiting at the counter
   Skip the lines, avoid awkward conversations, and get on the road faster. Operators like Sixt now offer full online check-in and mobile app flows that replace the desk altogether.
2. Car you booked = car you get
   No more vague “or similar” surprises. Apps like Hyre and Sixt let you choose the actual vehicle, right before your trip.
3. No paperwork, no friction
   Everything is handled in-app: driver’s license verification, payment, pickup, and return.
4. Unlock with your phone
   Smartphone access makes key handover unnecessary. Some services also offer remote unlock support if something goes wrong.
5. On-demand rentals
   Rent a car for an hour, a day, or a week – flexible durations are easier to offer with digital flows.

This is what the modern traveller wants: clarity, control, and speed.

Why operators are embracing digitalisation

While the user benefits are clear, the real business case lies in how much better digitalisation makes operations:

1. Reduced staffing costs
   With no need for front desk staff at every location, operators save significantly – especially at airports and peak-time zones.
2. Higher fleet utilisation
   Real-time data enables better fleet distribution, faster turnover between rentals, and reduced downtime.
3. Better user data and insights
   A mobile-first journey provides valuable usage data: when people rent, where, how long, and what kind of car. This helps with pricing, loyalty, and upselling.
4. Fewer manual errors and disputes
   Digital contracts, ID checks, and timestamps reduce risk and improve accountability.
5. New revenue models
   Digitalisation opens the door for hybrid models – like Sixt Share – where rental and car sharing meet. One fleet, multiple use cases.

Real examples: Hyre, Sixt, Avis, and Beyond

• Hyre (Norway): A leader in mobile-first car rental and sharing. Took over Europcar’s prime airport locations in 2024. Profitable, scalable, and 100% digital.
• Sixt: Offers online check-in, vehicle pre-selection, and app-based car access in key cities. Its Sixt Share product blends traditional rental and flexible car sharing in a single app. Sixt also lets customers select their exact car model up to 30 minutes before pickup.
• Avis Budget Group: Investing heavily in digital transformation – using AWS to build connected vehicle platforms and real-time user tracking. In Mexico, Avis even launched biometric identity verification, allowing renters to skip counters using facial recognition.

These companies understand that digitalisation isn’t about offering an app – it’s about rebuilding the rental experience around the user. And it's paying off.

What this means for operators (and how ATOM Mobility can help)

If you’re running a rental operation and still relying on paperwork, front desks, or disconnected tools, now’s the time to evolve.

Here’s how you can modernise your operations with help from ATOM Mobility:

• Replace paper with digital onboarding
  Use in-app license scanning, facial verification, and automated approval flows.
• Enable keyless vehicle access
  Let users unlock the vehicle via app, securely and reliably.
• Offer flexible rental durations
  Go beyond daily rates – allow hourly, weekend, or hybrid rental periods.
• Use data to guide pricing and availability
  Monitor usage patterns and demand in real time. Adjust pricing zones dynamically.
• Launch new revenue streams
  With digital infrastructure in place, testing car sharing or subscriptions becomes much easier.
• Cut costs and increase vehicle ROI
  More bookings per vehicle, lower overhead, and happier customers – all enabled by a modern backend.

ATOM Mobility provides all the building blocks to power this shift. Whether you’re a traditional rental company l

ooking to go mobile-first, or a new operator exploring flexible mobility, we’ve built the tech to get you there.

The rental counter is going away

Car rental is becoming more like e-commerce: fast, digital, and customer-led. The counter, the queue, the paperwork – these are all parts of an older model that no longer meets expectations. The future lies in seamless, app-based access that lets users pick the car they want, when they want it.

The Hyre example shows what’s possible with the right model. Sixt and Avis show how even large incumbents are adapting. If you’re an operator – big or small – the time to start this shift is now.

And if you’re looking for a trusted partner to support you on that journey, ATOM Mobility digital rental software is ready. We help rental and car sharing businesses launch, scale, and thrive – with the tech that powers modern mobility.